GBP/USD Price Analysis: Cable justifies downbeat UK retail spending to reverse from 50-SMA to 1.2750

GBP/USD prints the first daily loss in three, holds lower grounds of late.
UK BRC Retail Sales suggest the lowest public spending in 11 months.
50-SMA precedes 1.2825-30 resistance confluence to test Pound Sterling buyers.
Upbeat oscillators suggest limited downside room despite presence of three-week-old bearish channel.

Anil Panchal FXStreet

GBP/USD takes offers to refresh the intraday low near 1.2755, posting the first daily loss in three amid early Tuesday in Europe. In doing so, the Cable pair justifies downbeat UK data while reversing from the 50-SMA within a three-week-old bearish channel.

The latest survey from the British Retail Consortium (BRC) marked the weakest Retail Sales growth in 15 months as it prints the 1.8% YoY figure for July versus 4.2% prior. Following the data release, the BRC said, per Reuters, that the British retailers suffered from heavy rain in July on top of the impact of high inflation with sales growth dropping to an 11-month low.

Technically, the Pound Sterling reverses from the 50-SMA hurdle of around 1.2785 as the RSI (14) line retreats. However, the oscillators remain beyond the 50 level suggesting the upbeat momentum and keeping the GBP/USD buyers hopeful amid the bullish MACD signals.

With this, the quote is likely to cross the immediate upside hurdle surrounding 1.2785 with the aim for reclaim the 1.2800 round figure.

However, a convergence of the 200-SMA, the previous support line from May 25 and a top line of the aforementioned descending trend channel highlights the 1.2825-30 as a tough nut to crack for the GBP/USD bulls.

Meanwhile, the 1.2700 round figure and the latest low of 1.2620 can entertain GBP/USD sellers ahead of challenging them with the bottom line of the stated channel, close to 1.2585. It’s worth mentioning that June’s low of 1.2590 can also challenge the Cable bears around 1.2585–90 zone.

GBP/USD: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.2757
Today Daily Change	-0.0027
Today Daily Change %	-0.21%
Today daily open	1.2784

Trends
Daily SMA20	1.289
Daily SMA50	1.2744
Daily SMA100	1.2591
Daily SMA200	1.2324

Levels
Previous Daily High	1.2789
Previous Daily Low	1.2713
Previous Weekly High	1.2873
Previous Weekly Low	1.2621
Previous Monthly High	1.3142
Previous Monthly Low	1.2659
Daily Fibonacci 38.2%	1.276
Daily Fibonacci 61.8%	1.2742
Daily Pivot Point S1	1.2735
Daily Pivot Point S2	1.2686
Daily Pivot Point S3	1.2658
Daily Pivot Point R1	1.2811
Daily Pivot Point R2	1.2839
Daily Pivot Point R3	1.2888

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD drops below 1.1600 on broad USD strength

EUR/USD stays under bearish pressure and trades at a fresh six-week low below 1.1600 on Tuesday. Despite stronger-than-forecast inflation data from the Eurozone, the pair struggles to stage a rebound as the US Dollar continues to attract safe haven flows amid escalating geopolitical tensions in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold drops below $5,200 on stronger USD, rallying US yields

Gold attracts some intraday selling and falls below $5,200 on Tuesday. The US Dollar climbs to a fresh high since January 20 and turns out to be a key factor exerting downward pressure on the commodity. Meanwhile, the benchmark 10-year US Treasury bond yield rises nearly 2% on the day, putting additional weight on XAU/USD's shoulders.

Crypto Today: Bitcoin, Ethereum, XRP pull back as sentiment remains in extreme market fear

The cryptocurrency market is broadly in the red on Tuesday as the Middle East grapples with an escalating war. Bitcoin (BTC) is in a pullback, trading below $67,000 at the time of writing, and most altcoins follow suit.

Middle East conflict ramps up a gear as energy price spike rips through markets

It’s another risk off day as geopolitical headwinds continue to batter financial markets. Although markets calmed during the US session and US stocks managed to post gains on Monday, this has not fed through to the European session, and stocks and bonds are sharply lower for a second day.

Hyperliquid Price Forecast: HYPE rises on commodities demand amid US-Iran war

Hyperliquid (HYPE) steadies above $33 at press time on Tuesday, marking its fourth consecutive day of recovery in a broadly volatile market due to the ongoing US-Israel strikes on Iran.